Will the Polygon’s Web3 Enhancement Sky-Rocket the MATIC Price to $5?

MATIC price had yet again dropped below $1.4 and consolidated hard around $1.6 for more than 10 days. With the beginning of the fresh weekly trade, the asset breached through the $1.7 resistance levels to comfortably hover very close to $2. However, the path towards $2 may currently be challenged by the bears and hence the asset may face another consolidation after rejection before attaining $2. 

The Polygon Network in the latest development towards its dream of building Web3 dApps, raised nearly $450 million in a private token sale. The funding round was led by over 40 investors led by Sequoia India. The funds will be used to build Web3 DApps including Polygon PoS, Polygon Edge and Polygon Avail. Some amount of capital will also be kept reserved for zero-knowledge(zk) technology. 

With the announcement, the MATIC price got a larger boost which was later fueled by the positive market sentiments. And hence the asset quickly jumped more than 20% and traded above $2. The bears got activated quickly and dragged the price below $1.95 in no time. 

The MATIC price with a sudden spike and consolidation paved the way for the formation of a bullish flag which may result in yet another massive spike shortly. The MATIC price during the previous working day was rejected at $2 and a huge possibility of retesting these levels is possible in the next couple of hours. However, strong resistance is between $2.3 and $2.4, and therefore, once the asset clinches above $2, it appears to be pre-programmed to hit these levels. 

The bullish momentum is expected to continue further as the platform is expected to continue with the development irrespective of the MATIC price trend. And hence this X-factor of Polygon may end up with large adoption by the traders and institutions. Therefore pushing the price much beyond $3 to hit $5 any time in Q1 or Q2 2022.